Micron’s Record Quarter Lifts Memory Stocks as the Nasdaq Falls for a Fourth Day

One blowout earnings report lit up the memory chip sector Thursday — but it wasn’t enough to lift the broader tech market, which fell for a fourth straight day.

Micron Posts a Historic Quarter

Micron Technology reported fiscal third-quarter results that blew past expectations. Revenue came in at $41.5 billion, more than quadrupling year over year and beating estimates by roughly 13%. Earnings per share beat forecasts by more than 17%, and the company raised its revenue guidance for the current quarter, citing relentless demand for memory chips. Shares surged 15.74% on the news.

The gains spread to other storage companies: Sandisk jumped 21.5% and Western Digital added 4.8% in sympathy. But the memory boom had a flip side — Apple fell 6.2% after announcing price increases on its iPad and Mac lines, attributing them in part to rising memory chip costs.

Why it matters for you: Micron’s results show just how much demand there is for AI-driven memory infrastructure. But if you hold broad tech exposure, the gains stayed narrow — every Magnificent 7 stock ended the day lower.

The Nasdaq’s Four-Day Slide

The Nasdaq fell 0.46% to close at 25,358.60 — its fourth consecutive losing session. Over those four days, the index has dropped about 4.6%. The S&P 500 barely moved, finishing essentially flat at 7,357.49. The Dow Jones Industrial Average edged up 0.14% to 51,920.62, helped by strength in sectors outside of tech.

Why it matters for you: Capital appears to be rotating out of large-cap technology names. If you are heavily weighted toward mega-cap tech, Thursday’s action is a reminder that even strong pockets of the sector — like AI chips — cannot pull the rest of the market along.

Small Caps Hit Another Record

The Russell 2000 index of smaller U.S. companies gained 0.71% to close at 3,007.86 — a new record and its second straight close above the 3,000 milestone it first crossed earlier this week. Small caps have outperformed large caps for most of the week, with the Dow advancing in three of the past four sessions while the Nasdaq and S&P 500 lagged.

Why it matters for you: Strength in small caps often reflects confidence in the domestic economy. It also signals that investors are diversifying away from the biggest names — which may be a healthy rotation or an early sign that mega-cap valuations are getting stretched.

Inflation: Still Running Hot

The Bureau of Economic Analysis released May’s Personal Consumption Expenditures (PCE) price index on Thursday — the measure the Federal Reserve watches most closely for inflation. Headline PCE rose 0.4% for the month, slightly below the 0.5% estimate, and came in at 4.1% on an annual basis. Core PCE, which excludes food and energy, rose 0.3% monthly and 3.4% annually — both in line with forecasts but still well above the Fed’s 2% target.

The data drew little market reaction, overshadowed by Micron’s earnings. But the underlying picture remains: inflation is easing gradually, not quickly.

Why it matters for you: The Fed’s own projections do not show interest rate cuts resuming until 2027 or 2028. A rate hike in 2026 is still on the table. Until inflation gets meaningfully closer to 2%, borrowing costs are likely to stay elevated.

Oil Is Sliding — And That Changes the Calculation

Crude oil prices fell Thursday amid a 60-day ceasefire in an active geopolitical conflict. Lower energy prices act as a natural brake on inflation, and some market observers noted that if oil keeps declining, it could reduce the case for another Fed rate hike and potentially bring rate cuts back into view sooner than the current timeline suggests.

That said, temporary ceasefires can expire, and global demand for oil — especially from emerging markets and data centers running AI workloads — remains structurally strong. The current dip in oil prices may not last.

Why it matters for you: Falling oil prices are generally good for consumers and for inflation. If the trend holds, it could shift the Fed’s outlook. But betting on 60-day diplomatic agreements is risky — watch crude prices over the next few weeks before drawing conclusions.

What to Watch

• Whether the Nasdaq can break its four-day losing streak on Friday
• Crude oil prices — continued declines could soften inflation and rate hike expectations
• Any Fed commentary following Thursday’s PCE report
• Micron’s price action in the days after its earnings surge — large post-earnings moves sometimes fade quickly

The Bottom Line

Thursday was a market of two stories: AI memory chips surged on one of the strongest earnings prints in recent memory, while the rest of big tech continued to slide. Small caps set a new record, the Dow held its ground, and inflation data came in roughly as expected — slightly elevated but not shocking. The Fed remains in wait-and-see mode, oil is easing, and the market is clearly in a rotation phase. Whether that rotation has further to run is the key question heading into Friday.

This article is for general information and education only. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Markets carry risk – do your own research or consult a licensed advisor before investing. MoneyPilotAI may earn affiliate commissions from tools we mention; see our affiliate disclosure.